That Value Analysis Was Developed Back
In the 1940's After World War II as a Way to Find Lower Cost but Higher
Quality Alternative products and methods. This was Due to the
Lack of Material Resources At The End of The War.

As I
write this article all of the news outlets are reporting that the
Houseís Health Care Reform bill HR 3200 has just been passed. If you
havenít read a synopsis of this bill you should, seeing as when this
bill is merged with the Senate bill and if approved, it will affect
EVERYONE in the healthcare industry for decades Ė big time.

Highlights:
If you are a healthcare device manufacturer it will cost you 2.5% in
additional taxes to sell your products to healthcare organizations.
Who do you think is going to pay for this extra tax burden?

$500
Billion will be slashed from hospitalís Medicare reimbursement that
has already been pruned for years by the Feds. How are you going
to replace this revenue source to meet your budget commitments?

$32
Billion in long-term care reductions are contained in this bill.
This is in addition to a 12 billion dollar cut in October of this
year by CMS. If your hospital has a long-term care facility how
are you going to fund it going forward?

Get Ready!
If you arenít preparing for these big, monumental and disruptive
changes in our healthcare system, now is the time to do so. I have
already observed that progressive hospitals, systems and IDNs making
radical changes to their supply chain operations. They have
been centralizing all of their purchasing activities under one
supply chain division, establishing distribution service centers,
reducing their PPI cost to an absolute minimum and are attacking
their utilization misalignments. Is this what you are doing too

Time is Running Out!
Even if healthcare reform isnít passed this year or even next
year fundamental changes in healthcare reimbursement will be the
order of the day going forward. We are now at the TIPPING POINT
with our healthcare cost which is increasing 10% to 13% annually for
our employers. These costs are unsustainable over the
long-term; time is running out for healthcare organizations that
arenít ratcheting down all of their costs to prepare for this
eventuality.

Donít
wait for the Senate bill to be passed to make sweeping and essential
changes in your supply chain operations; the winds of change are
upon us and their velocity is growing every year
necessitating a change in the way we do business. If we donít start
this change now we will be left with federal mandates like the ones
that I just cited that will be almost impossible to recover from or
to keep our boat afloat.

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